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Introduction
Budget deficit is a problem for Albania in the last three years.
General aspests of B.D., it’s origins and Albania.
The factors that led the budget deficit in his highest growth.
BUDGET DEFICIT
BUDGET DEFICIT
General aspects of budget deficit, its origin and Albania:
•Types of expenses from the government
•Incomes to cover the expenses:
a) the tax on the domestic wares and services b) customsc) the incomes from the enterprise and the propertiesd) social security e) profit and income taxf) Etc…
Budget Deficit and GDP:
BUDGET DEFICIT
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
0
2
4
6
8
10
12
14
16
Budget deficit/GDP( %)
Budget deficit/GDP( %)
Source: Ministry of Finance( 2010)
The effects that budget deficit has on familiar economies and for everyone
Higher prices
Higher taxes :
a) Increase of inflationb) Increase of debt
Every Albanian will be in charge of debt by 2328 dollars
BUDGET DEFICIT
The factors that led the budget deficit to the highest growth:
Durres-Kukes-Morine Road, Ineffective fiscal policy.
BUDGET DEFICIT
2007 2008 20090%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Road expenses/capital expenses
Source: Ministry of Transport and Telecommunications( 2010) and our calculations
Public debt as a risky tool for reducing the budget deficit
1. Domestic Debt: The effect of banks to the government
BUDGET DEFICIT
Source: Ministry of Finance( 2010)
2. External Debt The external debt per sector in the last three years
BUDGET DEFICIT
The external debt per sector in the last three years
Source: Ministry of Finance( 2010)
We have an excess of public expenditures. Not realizing of the income and overcoming of
expenditures.
Currency depreciation. What said the FMN to the government.
Conclusions
BUDGET DEFICIT
References Bank of Albania (2004): “ Budget deficit”, To understand the state
budget, pp. 15- 19. http://www.bankofalbania.org/web/pub/broshura_buxheti_1014_1.pdf accessed 15.04.2011
International Monetary Found (2010):” Fiscal Policies” , Fiscal Objectives in post IMF Program World: The case of Albania, Working Paper No.10, pp.3-6.
Angjeli, Anastas (2007): Transition and economic freedom in Albania. Tirana: Geer.
SOROS Fund Management (2010): The State Budget Monitoring 2009.Tirana. Albania.
Ministry of Finance (2010): Public Debt Strategy for the period 2008-2010.
http://www.minfin.gov.al/downloads/Stema%20e%20MoF.pdf Ministry of Transport and Communications (2010): Expenditures
report for 2009. Tirana. Albania.
BUDGET DEFICIT
